Globalisation and Its Effect — КиберПедия 

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Globalisation and Its Effect

2017-10-16 242
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1.There are many different definitions of globalisation, but most acknowledge the greater movement of people, goods, capital and ideas due to increased economic integration which in turn is pushed by increased trade and investment. It is like moving towards living in a borderless world.

2. There has always been a sharing of goods, services, knowledge and cultures among people and countries, but in recent years improved technologies and a reduction of barriers means the speed of exchange is much faster. Globalisation provides opportunities and challenges. Bigger markets can mean bigger profits which leads to greater wealth for investing in development and reducing poverty in many countries. Weak domestic policies, institutions and infrastructure and trade barriers can restrict a country's ability to take advantages of the changes. Each country makes decisions and policies that position them to maximise the benefits and minimise the challenges presented by globalisation.

3. The issues and perceived effects of globalisation excite strong feelings, tempting people to regard it in terms of black and white, when in fact globalisation is an extremely complex web of many things. The following facts present ten pros and cons often expressed about globalisation.

Benefits of globalisation:

ü Economies of countries that engage well with the international economy have consistently grown much faster than those countries that try to protect themselves.

ü Countries which have had faster economic growth have then been able to improve living standards and reduce poverty.

ü Improved wealth has led to improved access to health care and clean water which has increased lifeexpectancy.

ü Increased global income and reduced investment barriers have led to an increase in foreign direct investment which has accelerated growth in many countries.

ü Improved environmental awareness and accountability has contributedto positive environmental outcomes by encouraging the use of more efficient, less-polluting technologies.

ü Increasing interdependence and global institutions like the WTO and the World Bank have enabled international political and economic tensions to be resolved on a "rules based" approach, rather than which country has the greatest economic or political power.

ü Improved technology has dramatically reduced costs and prices changing the way the world communicates.

ü Modern communications and the global spread of information have contributed to the growth in liberal democracies around the world.

ü The voluntary adoption by global companies of workplace standards for their internationalised production facilities in developing countries has made an important contribution to respect for international labour standards.

ü International migration has led to greater recognition of diversity and respect for cultural identities which is improving democracy and access to human rights.

Problems of globalisation:

ü There are social and economic costs to globalisation. Trade liberalisation rewards competitive industries and penalises non-competitive ones, and it requires participating countries to undertake economic restructuring and reform.

ü Some countries have been unable to take advantage of globalisation and their standards of living are dropping further behind the richest countries.

ü Increased trade and travel have facilitated the spread of human, animal and plant diseases, like HIV/AIDS, pig and bird flu, across borders.

ü The increasing interdependence of countries in a globalised world makes them more vulnerable to economic problems like the Asian financial crisis of the late 190's.

ü The environment has been harmed as agricultural, forest, mining and fishing industries exploit inadequate environmental codes and corrupt behaviour in developing countries.

ü The major economic powers have a major influence in the institutions of globalisation, like the WTO, and this can work against the interests of the developing world.

ü Trade liberalisation and technological improvements change the economy of a country, destroying traditional agricultural communities and allowing cheap imports of manufactured goods. This can lead to unemployment.

ü Modern communications have spread an awareness of the differences among countries, and increased the demand for migration to richer countries.

ü Highly educated and qualified professionals, such as doctors, engineers and IT specialists, migrate to developed countries to benefit from the higher wages and greater career and lifestyle prospects. This creates severe skilled labour shortages in developing countries.

ü Indigenous and national culture and languages can be eroded by the modern globalised culture.

4. Globalisation has costs and benefits. There have been examples of poorly managed globalisation (e.g. when countries opened their economic borders before they had the capacity to respond well) but there are also examples of well managed engagement with the international community.

5. Like it or not, globalisation is a reality. Many countries have committed themselves to reducing poverty and are co-operating together to work out smart ways to manage globalisation.

 


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